Long distance landlording

[Fizgig]

It is really that bad? I'm looking at a likely move within the next 6-12 months, and I'm tempted to hang on to the house. I'd be moving from a low COL area (Houston) to high (Boulder), and I could not realistically buy property there. The median home price is about half a million and I'd only earn ~70-80k. There are three reasons I'm thinking about keeping the house - 1. It would be cash flow positive. 2. To keep my holdings diverse. 3. As an escape hatch - it has a garage apartment that pays the mortgage, so I can hole up there cheaply if life throws a curveball or Boulder doesn't work out.

Here are my particulars:

Single female, 33
Mortgage 90k, 5.5%, $580/month
Taxes/insurance $320/mo (mostly insurance. Yes I've shopped around but insurance in my area is exorbitant.)
Liquid savings 35k
Retirement 80k
The mortgage is my only debt

Comparable rents make me think I could charge $1200-1300. I'd get a property manager, most of which charge 10%. It'd be a few hundred positive per month, which realistically I know is just enough to sock away and cover major expenses like a roof or furnace replacement. I'd be able to cover the bills pretty comfortably if it were vacant for a few months. Even though it has a garage apartment, I don't think I could rent them separately because they're on the same water/power. Besides, twice the tenants is twice the headaches.

So, I'm just wondering if I'm a fool for considering this or if other people have had good/bad experiences with long distance landlording.

[krantcents]

It is really that bad? I'm looking at a likely move within the next 6-12 months, and I'm tempted to hang on to the house. I'd be moving from a low COL area (Houston) to high (Boulder), and I could not realistically buy property there. The median home price is about half a million and I'd only earn ~70-80k. There are three reasons I'm thinking about keeping the house - 1. It would be cash flow positive. 2. To keep my holdings diverse. 3. As an escape hatch - it has a garage apartment that pays the mortgage, so I can hole up there cheaply if life throws a curveball or Boulder doesn't work out.

Here are my particulars:

Single female, 33
Mortgage 90k, 5.5%, $580/month
Taxes/insurance $320/mo (mostly insurance. Yes I've shopped around but insurance in my area is exorbitant.)
Liquid savings 35k
Retirement 80k
The mortgage is my only debt

Comparable rents make me think I could charge $1200-1300. I'd get a property manager, most of which charge 10%. It'd be a few hundred positive per month, which realistically I know is just enough to sock away and cover major expenses like a roof or furnace replacement. I'd be able to cover the bills pretty comfortably if it were vacant for a few months. Even though it has a garage apartment, I don't think I could rent them separately because they're on the same water/power. Besides, twice the tenants is twice the headaches.

So, I'm just wondering if I'm a fool for considering this or if other people have had good/bad experiences with long distance landlording.

Will you have it professionally managed? You need someone to keep an eye on it. Definitely screen the prospective tenant thoroughly. I am a former landlord (9,10,24 units & shopping center). I would never remotely own a property without someone keeping an eye on it. Things can go bad fairly quickly. Good luck.

[mdcrim]

I'd keep the house, get a property management company and look into maybe getting a home warranty to cover the systems. I can't imagine long distance landlording is fun but if you're willing to pay to have someone else to manage it I think you should be fine.

[SavingAdvice]

Yes i agree i would have someone else handle it since if your not there or have someone to represent you then the renter feels not obligated

[TBH]

Wow, I think it sounds like a great property to hang onto. If you can rent it or live in it, it is a great ace in the hole. Good for you.

The OP did say she was planning to hire someone to manage it, so I think it sounds like a good plan.

If Boulder works out, and you find yourself in a dual-income household at some point, selling the Houston property at that point would give you a very nice downpayment on that half-million dollar house in Boulder.

[cjscully]

Just make sure you can completely trust the person managing the property for you. A slightly less than honest or slightly less than competent property manager can kill you.

[runj]

Yes i agree i would have someone else handle it since if your not there or have someone to represent you then the renter feels not obligated

Best to get someone who can do the job